VinaCapital completes exit from Vietnam dairy producer
Vietnam’s VinaCapital and Japan’s Daiwa PI Partners have sold the remainder of their interest in Vietnamese dairy producer International Dairy Products (IDP).
Last month, the two investors had agreed to sell a 28% stake to a consortium led by local consumer goods investor Blue Point for an undisclosed sum. They have now received $45.7 million for the remaining 37% stake in IDP, a producer of flavored milk and yogurt products in southern Vietnam.
VinaCapital and Daiwa paid $45 million for a 70% interest in the company in 2014. VinaCapital held a 55% stake through the Vietnam Opportunity Fund (VOF), a closed-end fund listed on the London Stock Exchange. Prior to the exit, it was the largest single private equity investment in the fund, accounting for 4.1% of net asset value (NAV). This implies VinaCapital's overall position for 55% in IDP was worth $35.8 million.
When VOF invested, the company – then known as Bavi – was in distress. The first 18 months of the investment were devoted to restructuring, addressing the capital structure, fixed assets, and product portfolio. The company returned to profitability in 2018.
"IDP is one of Vietnam's leading dairy producers, and the company is in good hands with a strategic investor who will be able to form synergies with their existing portfolio of investments across the fast-moving consumer goods sector,” said Andy Ho, a managing director at VinaCapital, according to a statement.
At the end of June, private equity investments comprised more than a fifth of the total assets held by VOF. NAV was down 5.1% year-on-year to $887 million as of August 6. This was blamed on the impact of COVID-19 on the Vietnamese economy.
Founded in 2003, VinaCapital has $3 billion under management across a range of asset classes including private equity, real estate, fixed income, and venture capital. It also has joint ventures with Draper Fisher Jurvetson in venture capital and Warburg Pincus in hospitality and lodging.
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